258: Portfolio Construction for a Changing World: Adapting to A Market Regime Shift

Portfolio construction is being redefined as investors face a fundamentally different market regime. Higher inflation, shifting interest rate dynamics, and accelerating megaforces like AI and geopolitics are challenging long-held assumptions about diversification and asset allocation across capital markets. In this episode of The Bid, host Oscar Pulido sits down with Vivek Paul, Head of Portfolio Research and UK Chief Investment Strategist at the BlackRock Investment Institute. Together, they explore why traditional portfolio construction frameworks may no longer be sufficient and how investors are adapting to a world of greater uncertainty, dispersion, and structural change. Vivek explains how megaforces such as AI investing and geopolitical fragmentation are creating unprecedented outcomes across markets, making static asset allocation less effective. He outlines why portfolio construction must become more dynamic and granular, with a deeper focus on underlying risk exposures rather than broad asset class buckets. The conversation also examines the growing importance of private markets, active strategies, and scenario analysis in navigating today’s environment. Timestamps 00:00 Introduction 01:56 What’s driving the shift in portfolio construction 03:24 Megaforces: AI and geopolitics 06:15 Rethinking traditional asset allocation 09:27 Diversification in a new regime 12:10 Total Portfolio Approach: Private markets and active strategies 14:28 Scenario analysis and future outcomes 17:48 Risks and maintaining structure 19:00 Key takeaways Sources: Rethinking portfolio construction during transformation, BII February 2026 portfolio construction, capital markets, AI investing, megaforces, asset allocation, private markets, stock market trends, investing strategy, diversification This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. Reference to any company or investment strategy mentioned is for illustrative purposes only and not investment advice. In the UK and non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures, visit blackrock.com/corporate/compliance/bid-disclosures . See Privacy Policy at and California Privacy Notice at .

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258: Portfolio Construction for a Changing World: Adapting to A Market Regime Shift is an episode from The Bid by BlackRock.

This episode is 00:21:17 long.

This episode was published on Apr 24, 2026.

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